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PRESIDENTIAL DECREE NO. 1621
PRESIDENTIAL DECREE NO. 1621 -
AMENDING SectionS SIX; TWENTY, PARAGRAPH (d) AND THE LAST PARAGRAPH
THEREOF; TWENTY-ONE; FORTY, PARAGRAPH (d); AND FORTY-ONE OF
PRESIDENTIAL DECREE NUMBERED FOUR HUNDRED AND SIXTY-FOUR, AS AMENDED,
OTHERWISE KNOWN AS THE REAL PROPERTY TAX CODE, AND ADDING THERETO A NEW
Section DENOMINATED AS Section NINETY-SEVEN (A)
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WHEREAS, it
is the general policy to establish a real property tax structure that
would incorporate the most realistic and fair property values that
could be derived from prevailing market conditions and other relevant
factors; chanroblesvirtualawlibrary
WHEREAS, under existing law, a general revision of property assessments
for taxation purposes is conducted only once in every five years, and
owing to the rapid pace of urban development, market values of real
property tend to rise abruptly before the next general revision period
due to the salutary effects of completed infrastructure and other
socio-economic projects;chanroblesvirtualawlibrary
WHEREAS, a realistic and equitable system of real property taxation
necessarily includes the grant of measures that will ease the tax
burden whenever found imperative, giving due and particular
consideration to the paying capacity of the low and middle-income
groups, as well as those devoting the use of real property only for
non-profit recreational purposes; chanroblesvirtualawlibrary
WHEREAS, in order to meet readily the urgent requirements of changing
economic conditions, there is a need to provide the Minister of Finance
with authority to formulate and prescribe the appropriate remedial
measures;chanroblesvirtualawlibrary
WHEREAS, to attain the foregoing purposes, it is necessary to amend
certain provisions of Presidential Decree No. 464 as amended, known as
the Real Property Tax Code, and to add new provisions therein.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the power in me vested by the Constitution, do hereby
decree and order to form part of the laws of the land, the following:cralaw:red
Section 1. Conduct of a General Revision of Real
Property Assessments for Taxation Purposes Once in Every Three Years.
—(a) In order to minimize the occurrence of abrupt increases in real
property valuations for taxation purposes caused by the lengthy period
of five years, intervening between general revision periods, Section 21
of Presidential Decree No. 464, as amended, is hereby amended to read
as follows: chanroblesvirtualawlibrary
"Sec. 21. General Revision of Assessments Once in
Every Three Years. — Beginning July 1, 1981 to June 30, 1982, the
provincial or city assessor shall make a general revision of real
property assessments in the province or city to take effect on January
1, 1983, and once every three years thereafter; Provided, however, That
if property values in a province or city, or in any municipality, have
greatly changed since the last general revision, the provincial or city
assessor may, with the approval of the Minister of Finance or upon his
discretion, undertake a general revision of assessments in the province
or city, or in any municipality before the third year from the
effectivity of the last general revision."
(b) In order to align the provisions of Section 6 of
PD 464, as amended, with the provisions of paragraph (a) above, the
same is hereby amended to read as follows:cralaw:red
"Sec. 6. Declaration of Real Property by Owner or
Administrator. — It shall be the duty of all persons, natural or
juridical, owning or administering real property, including the
improvements therein, within a city or municipality, or their duly
authorized representative, to prepare, or cause to be prepared, and
file with provincial or city assessor, a sworn statement declaring the
true value of their property, whether previously declared or
undeclared, taxable or exempt, which shall be the current and fair
market value of the property, as determined by the declarant. Such
declaration shall contain a description of the property sufficient in
detail to enable the assessor or his deputy to identify the same for
assessment purposes. The sworn declaration of real property herein
referred to shall be filed with the assessor concerned once every three
years during the period from January first to June thirtieth commencing
with the calendar year 1980, unless required earlier by the Minister of
Finance." chanroblesvirtualawlibrary
(c) To conform with the foregoing amendments in
paragraphs (a) and (b) above, the last paragraph of Section 20 of PD
No. 464, as amended, is hereby further amended to read as follows:cralaw:red
"Sec. 20. Assessment Levels. —.
"For the first general revision of assessment to be undertaken after
the approval of this Code and every three years thereafter, the
assessment levels hereinabove prescribed for the different classes of
real property may be increased at rates to be fixed by the Minister of
Finance, but in no case shall such increase in rates exceed ten percent
of the assessment levels herein prescribed for each class of real
property."
Section 2. Increasing the amount of exemption under
paragraph (d), Section 40 of PD 464, as amended. — Section 40,
paragraph (d) of PD 464, as amended, is hereby amended to read as
follows: chanroblesvirtualawlibrary
"Sec. 40. Exemption from Real Property Tax. — The
exemptions shall be as follows:cralaw:red
"(d) Real property in any one city or municipality
belonging to a single owner, the entire assessed valuation of which is
not in excess of one thousand pesos; Provided, however, That the
property so exempt shall be assessed and records thereof kept as in
other cases."
Section 3. Increasing the amount of exemption from
the additional one per cent tax for the Special Education Fund. —
Section 4 of Presidential Decree No. 464, as amended, is hereby amended
to read as follows:cralaw:red
"Sec. 41. An additional one per cent tax on real
property for the Special Education Fund. — There is hereby imposed an
annual tax of one per cent on real property to accrue to the Special
Education Fund created under Republic Act No. 5447, which shall be in
addition to the basic real property tax which local governments are
authorized to levy, assess, and collect under this Code; Provided,
however, That the first five thousand pesos of the entire total
assessed valuation of real property situated in a municipality or city
assessable to any one person shall be exempt from the additional one
per cent tax herein imposed."
Section 4. Reducing the Assessment Level of the
Special Class of Real Properties Used for Recreational Purposes from
Thirty Per Cent to Fifteen per cent of the Market Value thereof—
Paragraph (d) of Section 20 of Presidential Decree No. 464, as amended,
is hereby amended to read as follows: chanroblesvirtualawlibrary
"(d) Special Classes. — The assessment level for all
lands, buildings and other improvements thereon, actually, directly and
exclusively used for educational, cultural, scientific or recreational
purposes, as well as hospitals not owned and operated by the government
or by any of its instrumentalities shall be fifteen per cent (15%) of
the market value of such properties. The special class of real
properties used for recreational purposes herein referred to shall
apply only to such properties which are owned by sports or athletic
clubs or such other recreational organizations not operated primarily
for profit."
Section 5. There is hereby inserted after Section 97
of PD 464, as amended, a new section to be designated as Section 97-A,
which shall read as follows:cralaw:red
"Sec. 97-A. Grant of Special Authority to the
Minister of Finance. — Whenever public interest shall so require, or in
special cases of economic dislocation or imbalance arising from natural
calamities, the Minister of Finance shall, upon direction or approval
of the President of the Philippines, formulate and prescribe a scheme
of graduated realty tax payments and/or a system of equalizing real
property valuations for taxation purposes, or such remedial measures
that would ease the tax burden, subject to such conditions and
requirements as may be deemed necessary."
Section 6. Repealing Clause. — All laws, decrees,
orders, rules and regulations which are contrary to, or inconsistent
with, the provisions of this Decree are hereby repealed or modified
accordingly.
Section 7. Implementing Rules. — The Minister of
Finance shall issue the rules and regulations for the proper
implementation of this Decree.
Section 8. Effectivity. — Except as otherwise herein
provided for, this Decree shall take effect immediately.
Done in the City of Manila,
this 19th day of April, in the year of Our Lord, nineteen hundred and
seventy-nine.
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